Bitcoin dips to $87K while Gold prints ATH amid U.S. shutdown fears — Is more downside coming?

Bitcoin dropped to $87,891 after trading above $90,000 last week. Gold surged past $5,000 per ounce for the first time in history. A potential U.S. government shutdown now looms with 80% odds on Polymarket.

The leading cryptocurrency fell 5.05% over seven days despite a mild 1.25% daily recovery. Trading volume surged 96.77% in 24 hours. The market now questions whether further downside awaits.

Gold’s market capitalization officially reached $35 trillion. Silver climbed to $115 per ounce after hitting $100 just 24 hours earlier. The precious metal gained over 60% this month alone.

Bitcoin ETFs Bleed Billions as Tariff News Triggers Selloff

Bitcoin ETFs recorded significant outflows over the past week. Daily net flows showed negative 966 BTC worth $84.66 million. Weekly outflows totaled 17,911 BTC valued at $1.57 billion, according to Lookonchain data.

Jan 26 Update:#Bitcoin ETFs:
1D NetFlow: -966 BTC(-$84.66M)🔴
7D NetFlow: -17,911 BTC(-$1.57B)🔴#Ethereum ETFs:
1D NetFlow: -7,601 ETH(-$21.92M)🔴
7D NetFlow: -206,122 ETH(-$594.46M)🔴#Solana ETFs:
1D NetFlow: +17,472 SOL(+$2.15M)🟢
7D NetFlow: +63,847 SOL(+$7.85M)🟢… pic.twitter.com/dcRj9VbZKR

— Lookonchain (@lookonchain) January 26, 2026

BlackRock and Grayscale led the losing streak among ETF providers. Meanwhile, $14 trillion asset manager BlackRock filed for a new iShares Bitcoin Premium Income ETF.

The new product aims to generate income rather than pure price exposure. It targets conservative investors seeking crypto allocation with reduced volatility.

President Trump’s tariff threats added pressure to crypto markets. He announced plans for 100% tariffs on Canada if it makes a deal with China. Bitcoin fell below $88,000 within 30 minutes of the news.

Approximately $60 million worth of leveraged long positions liquidated during the selloff. The government shutdown odds rose to 80% by January 31st on Polymarket.

This potential shutdown comes less than three months after the previous one. The last closure lasted 43 days, marking the longest in U.S. history.

Strategy Adds 2,932 BTC as Saylor Maintains Aggressive Accumulation

Michael Saylor announced Strategy acquired 2,932 BTC for approximately $264.1 million. The purchase price averaged $90,061 per bitcoin. This follows last week’s acquisition of 22,305 BTC for $2.13 billion.

Strategy has acquired 2,932 BTC for ~$264.1 million at ~$90,061 per bitcoin. As of 1/25/2026, we hodl 712,647 $BTC acquired for ~$54.19 billion at ~$76,037 per bitcoin. $MSTR $STRC https://t.co/RooLfEvniX

— Michael Saylor (@saylor) January 26, 2026

Strategy now holds 712,647 BTC purchased for roughly $54.19 billion. The average acquisition price stands at $76,037 per bitcoin. A whale also acquired 1,500 BTC valued at $131M.

🔥 UPDATE: A WHALE JUST ACQUIRED 1,500 BITCOIN VALUED AT $131M. THE WHALES ARE BUYING $BTC, THEY KNOW WHAT'S COMING💪. pic.twitter.com/M2vkmBztLC

— Coinwaft (@coinwaft) January 26, 2026

Analyst RektCapital noted Bitcoin’s weekly close fell below the $90,500 mid-range. Price also dropped below a multi-week higher low. However, Bitcoin remains within the broader $86,000 to $93,500 range.

The analyst emphasized that the next reaction from $86,000 support proves crucial. A weaker rebound compared to Q4 2025 could signal fading support at that level.

Ted Pillows reported $152.8 million in buy orders placed between $85,000 and $88,000. This zone represents strong accumulation interest from buyers.

Bitcoin Price Consolidates Near $86,000 Support as Key Indicators Signal Resistance

Bitcoin trades at $87,891 with the 9-day EMA at $89,479 acting as immediate resistance. The 20-day SMA sits at $91,530, representing a major hurdle for bulls.

Bollinger Bands show significant contraction after October’s expansion. The upper band rests at $97,284 while the lower band aligns with support at $85,777. Price oscillates between the middle and lower bands.

The daily chart reveals a consolidation rectangle between $86,000 and $93,500. This pattern has persisted for approximately six weeks. Volume declined significantly during this range-bound period.

Critical support holds at $86,000 with multiple daily closes defended. A breakdown below this level opens the door to $82,000 and $80,000.

Immediate resistance appears at $89,500 to $90,000 near the 9-day EMA. Major resistance clusters at $92,000 to $93,500 where the range top meets the 20-day SMA.

The Fibonacci 0.236 retracement at $91,000 serves as the first significant level to reclaim. Price remains in corrective territory below this threshold.

Bitcoin maintains a neutral to slightly bearish short-term bias. The $86,000 support level remains essential for avoiding a sharp downside breakdown. A confirmed break above $93,500 with volume expansion would signal trend reversal.